Below are the key takeaways from the third publication in the ISS STOXX Research Institute’s new series on critical minerals. To download a copy of the full report, please click here.
- Lithium plays a pivotal role in the global energy transition, serving as a core mineral for technologies that enable decarbonization and electrification. Its primary application lies in lithium-ion batteries, which power Electric Vehicles (EVs), renewable energy storage systems, and a wide range of consumer electronics.
- Global lithium demand surged by nearly 30% in 2024, far exceeding the average 10% annual growth seen in the 2010s. The growth was driven primarily by increasing production of electric vehicles, Li-ion batteries, and grid-scale battery storage. The energy sector now accounts for 85% of lithium-demand growth.
- ISS data indicate that sustainability challenges such as biodiversity loss, human rights concerns, and climate change pose risks to investors in lithium mining and processing companies. To mitigate these risks and enhance sustainability performance, companies can adopt circular economy approaches, including recycling and resource-efficient practices.
This publication series from ISS STOXX’s Research Institute, in collaboration with colleagues across the sustainability research and product teams, examines the sustainability profile of mining companies. The series leverages data from various solutions, including the ESG Corporate Rating, Biodiversity Impact Assessment Tool, Modern Slavery Solution, and Norm-Based Research. This third publication focuses on lithium mining.
Explore ISS STOXX solutions mentioned in the report:
- Identify ESG risks and seize investment opportunities with the ESG Corporate Rating.
- The Biodiversity Impact Assessment Tool helps investors assess the impact of companies’ business and supply chain activities on biodiversity.
- Identify, evaluate and act on modern slavery risks and their impact on investments with the Modern Slavery Solution.
- Assess companies’ adherence to international norms on human rights, labor standards, environmental protection and anti-corruption using Norm-Based Research.
By:
Debaprasad Sengupta, Senior Associate, Biodiversity Lead-ISS STOXX Research Institute, ISS STOXX
Jhanavee Sheth, Vice President, Sector Head-Energy, Materials, & Utilities, Sustainability Research, ISS STOXX
Liliana Picchi Cappuccelli, Associate, Screening & Controversies Research, Sustainability Research, ISS STOXX
